2014 IPAA Oil & Gas Symposium April 9, 2014 John A. Weinzierl Andrew J. Cozby Chairman and CEO Vice President and CFO www.memorialpp.com
Overview of Memorial Production Partners LP Upstream MLP headquartered in Houston Diverse portfolio of mature, long-lived producing properties Focus on acquiring, exploiting and developing oil and gas properties Assets in East…
Acquisitions Update March & April 2014 Completed an acquisition of Eagle Ford assets for approximately 173 million, effective January 1, 2014 MEMP acquired an interest in 117 producing wells, subject to a seller retained net profits…
Significant Footprint MEMP Asset Overview Total Partnership (Pro Forma) Proved Reserves (Bcfe) 1,075 % Proved Developed 61% California % Gas Reserves 58% Proved Reserves (MMBbls) 14.3 Production (MMcfe/d) 181.9 % Oil Reserves 100%…
MRD Relationship Provides Exceptional Growth Opportunities Value Enhancing Relationship with MRD MRD Asset Overview Significant and diverse asset base with over 1 Over 1 Tcfe of proved reserves (1) Tcfe of proved reserves (1) 4Q 2013…
MEMP Has Executed on All Acquisition Strategies 100% Ownership 91% Ownership 9% Ownership Public Unitholders Drop Downs from Third Party Joint Bid with Acquisitions from NGP Memorial Resource Acquisitions Memorial Resource…
Acquisition Strategy Drives Growth & Diversification Acquisitions Since IPO Proved Reserves (1) Net Production(1) Purchase Price (1) Date Transaction Structure Location (Bcfe) (MMcfe/d) (MM) March 14 Third Party Acquisition Eagle Ford…
East Texas / North Louisiana Asset Summary Asset Overview Asset Location Key Fields: Joaquin, Carthage, Willow Springs, East Henderson and the Terryville fields Primary Formations: Cotton Valley, Travis Peak Field Characteristics:…
Permian Basin Asset Summary Asset Overview Asset Location Key Fields: Anita, Atoka, Dimmitt, Elkhorn, Kingdom Abo and North Square Lake Primary Formations: Abo Reef, Cherry Canyon, Clearfork and Palo Pinto Field Characteristics:…
Eagle Ford Asset Summary Asset Overview Asset Location Acreage position in the core of the Eagle Ford in Karnes County Area recognized as the volatile oil window Eagle Ford Shale Trend History and Size: Petrohawk drilled the first of…
California Asset Summary Asset Overview Asset Location Located 11 miles offshore Port of Long Beach, Los Angeles Long Beach California 2 wellhead platforms each with a permanent drilling Huntington Beach Ellen and Elly rig; 1…
Significant Remaining Original Oil in Place Overview Comparison to an Analogous Field (1) An independent third party reservoir consultant prepared Category Wilmington Field Beta Field an extensive reservoir model that estimates OOIP in…
South Texas Asset Summary Asset Overview Asset Location Key Fields: NE Thompsonville, Laredo and East Seven Sisters Primary Formations: Lobo, Wilcox Field Characteristics: Fields discovered as early as 1959 Production depth ranges…
Rockies Asset Summary Asset Overview Asset Location Key Fields: Fort Collins and Moxa Arch Primary Formations: Muddy, Frontier and Dakota Field Characteristics: Fort Collins: Muddy Sandstone production with waterflood operations Moxa…
Financial Strategy Safety, Growth and Cash Flows Liquidity provided by 845 MM borrowing base (before redetermination) Preserve Financial 4Q 2013 trailing 12-month DCF coverage ratio of 1.03x Flexibility Expect to fund acquisitions…
MEMP Hedging Overview: 2014 through 2019 MEMPs commodity risk management policy provides for hedging approximately 65-85% of estimated production from total proved reserves on a rolling three to six year period Policy reduces MEMPs…
Full Year 2014 Guidance Full Year 2014 Guidance Low High For Year Ending For Year Ending December 31, 2014 December 31, 2014 Annual Production (Bcfe) 67 69 Adjusted EBITDA (MM) 303 311 Distributable Cash Flow (MM) 158 166…
Safety, Growth and Returns High quality assets MLP appropriate asset profile Strong sponsorship with aligned interests Supportable and clear growth strategy Seasoned management team Cash flow visibility and security…
Appendix
Cash Margin Per Mcfe Three Months Ended 12/31/2013 Net production volumes Oil (MBbls) 457 NGLs (MBbls) 485 Natural gas (MMcf) 9,787 Total (MMcfe) 15,428 Average net production (MMcfe/d) 167.7 Average sales prices before…
Low Development Costs Maximize Margins Identified Production Replacement Project Types PDNP + PUDs PUDs Only Control and reduce costs through low-risk drilling, recompletions 459.7 Bcfe Total 398.2 Bcfe Total and operational…
Natural Gas and NGL Hedges: 2014 through 2019 Natural Gas / NGLs Hedge Summary Year Ending December 31, 2014 2015 2016 2017 2018 2019 Natural Gas Derivative Contracts: Swap contracts: Volume (MMBtu) 32,345,500 29,823,340 29,909,300…
Natural Gas & Oil Basis Hedges: 2014 through 2019 Basis Hedge for Natural Gas Year Ending December 31, 2014 2015 2016 2017 2018 2019 NGPL Tex/Ok Gas Differential Total natural gas volumes hedged (MMBtu) 27,025,000 Total natural gas…
2014 Adjusted EBITDA & Distributable Cash Flow Guidance Reconciliation Low High For Year Ended For Year Ended (In millions) December 31, 2014 December 31, 2014 Calculation of Adjusted EBITDA: Net income 134 142 Interest expense 64…
Adjusted EBITDA Reconciliation Historical For the Year Ended December 31, (In thousands) 2012 2013 Calculation of Adjusted EBITDA: (1) Net income 46,518 20,268 Interest expense, net 20,436 41,901 Income tax expense 285 308…
Distributable Cash Flow Reconciliation Historical For the Year Ended December 31, (In thousands) 2012 2013 Calculation of Distributable Cash Flow: (1) Net income 46,518 20,268 Interest expense, net 20,436 41,901 Income tax expense…
Non-GAAP Measures Use of Non-GAAP Financial Measures. This presentation includes the non-GAAP financial measures of Adjusted EBITDA and Distributable Cash Flow. The accompanying schedules provide a reconciliation of these non-GAAP…
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